Practical Guide to S Corporations (8th Edition)

S Corporations, at present, are the largest tax filer in the United States of America. This book provides, in a single volume, a complete guide and reference tool for the tax practitioner to solve the many problems arising in regard to S corporate taxation. While this book does not cover every single case, ruling, or procedure on a particular point, the reader is provided with the main case or point in a particular area, so that this situation can be understood quickly. Further, the Appendices provide practical information for the tax practitioner to utilize in his or her practice. To assist the reader, tax planning situations are presented throughout the book.

This book is organized into sixteen chapters. Chapter 1 discusses the tax considerations in electing S corporate status, as well as the advantages and disadvantages of S corporate taxation. Chapters 2-10 detail operations of an S corporation, discussing the statutory requirements to be an S corporation, the types of taxpayer who can qualify as shareholders, considerations that one must make before converting a C corporation to S status, etc. Chapter 11 sets forth income and estate planning situations for S corporations. Chapter 12 covers changes which could occur in the life of an S corporation, namely, termination and revocation of the S corporate status, sale of S corporate stock, reorganization of the corporation, etc.

Chapter 13 provides the reader with a comparison of S corporations to other business entities, such as one-person limited liability companies, partnerships, and C corporations. Chapter 14 discusses S corporation subsidiaries, Chapter 15, employee stock ownership plans (“ESOPs”) for S corporations, and Chapter 16, a detailed discussion of the final and proposed regulations under Code Sec. 1411. The author attempts to keep this book current and up to date. Thus, ¶724 at the end of Chapter 7 discusses the final tangible property regulations which went into effect as of January 1, 2014. At various places in the book, the reader will find discussion of the Surface Transportation Act of 2015.

This book is not intended to apply to all circumstances, and the Forms contained herein may not be applicable in every situation. Further, the law is constantly changing in the field of S corporations. Accordingly, it is strongly urged that the current status of all statutes, case law, rulings, regulations, revenue procedures, announcements, notices, Forms and/or applications thereof be confirmed before relying on the information set forth in this book.

It should be noted that in writing this book, the author has attempted to make the table of contents read like an index. The reader has three easy means to solve a problem or locate a topic: the Contents, Contents in Detail on page xiii and the Index. In addition, the author has provided a table of cases, statutes, treasury regulations, rulings, and procedures so that the reader will have an easy-to-use method to solve a specific problem. To assist the reader in practice, the Appendices supply sample language for various situations regarding S corporations.

This book is intended to remove some of the mystery surrounding S corporations and their complexities. Because of its thoroughness, multitudinous examples, and tax pointers, this book should provide the reader with a unique resource tool to be utilized as a major addition to a tax library.